Innovation Sourcing Details

Process | Fee Structure | Engagement Steps | FAQ

Our Process

Serica’s unique market position and systematic approach enable us to source the best innovations from across China.

Innovation Sourcing

  • 1

    STRATEGY & PLANNING
    From broad product categories to technical requirements of a specific technology we work together to understand your needs and create clearly defined target criteria.

    (Optional) An innovation strategy can be developed on request

  • 2

    RESEARCH & EXPLORATION
    Conduct detailed market research to find innovators that meet your requirements, conduct basic due diligence (company reports and due diligence interviews), and compile a shortlist for your consideration.

    (Optional) Site visits can be conducted nationwide on request

  • 3

    WIN ECONOMIC INCENTIVES
    Engage and negotiate with regional governments to apply for tax breaks, logistics subsidies, and other generous incentives and support.

     

  • 4

    INVITE SUPPLIERS 
    Divide companies from the shortlist into groups by provinces or regions (depending on volume and size), then invite key decision-makers from each group to a venue in the capital of their province for a two-day ‘innovation sourcing event’.

     

  • 5

    TRAINING & COACHING
    Induction training that will onboard your team with the practical insights, strategies, and techniques they need to effectively promote, engage and negotiate with Chinese innovators.

  • 6

    SUPPLIER ENGAGEMENT
    Help you meet with, assess, and qualify each innovator who presents their products and solutions to you. Those who meet your expectations will be invited for a follow-up meeting where you can (with or without our support) negotiate a mutually beneficial deal.

    (Optional) Interpreters can be sourced upon request

  • 7

    CONTRACT NEGOTIATION (Optional)
    Conduct negotiations with innovators, with or on your behalf, to secure favorable pricing, terms, and other key provisions to ensure you win profitable, safe, and sustainable deals.

  • 8

    CONSOLIDATION & ACCOUNT MANAGEMENT (Optional)
    Help manage specific relationships and resolve conflict where necessary, identify new opportunities and provide ad-hoc support to your team.

Fee Structure

Fully tailored to your needs and goals, our monthly fees (based on an annual recurring contract) are calculated from specific project variables, including industry complexity, resource allocation, and value created.

VARIABLES

PROJECT FEE

(formula)
Complexity x Time x Value Created =
(formula)
,
(our rates)
$30k per month
(on average)
.

VALUE ADDED SOLUTIONS

Innovation Strategy: >$30,000
Site Visits: $1000-3000 per day
Contract Negotiation: 1-5% of the contract value
Post-Project Representation: $3000 – 10,000 per month (based on an annual contracts)
Interpreters: $200 per hour (supplied by a third party)

All prices are in USD and exclusive of sales tax.
Serica DOES NOT, under any circumstances, work on a sweat equity or commission only basis.

Engagement Steps

Our engagement process is designed to be highly collaborative to ensure that we find the best solution for your company as efficiently and effectively as possible.

  1. Receive a complimentary initial consultation to discuss your goals for the Chinese market and how Serica can help you achieve them.
  2. Sign a Mutual Non-Disclosure Agreement (MNDA) to protect everyone’s interests. For mutual convenience and security, agreements are sent electronically via DocuSign.
  3. We outline the details (in a simple 10-slide presentation) of our prescribed solution – covering the opportunities, time-frames, the value created, and estimated project fees for your consideration.
  4. Once you achieve consensus on the broad solution, we will have a follow-up meeting to allow you to ask any questions, refine details, and request changes.
  5. Building upon what was previously discussed and agreed upon, we collaborate to develop an ‘Initial Proposal’ covering the precise scope, deliverables, and operation details.
  6. We conduct a ‘Proposal Review Meeting’ where we both have the opportunity to discuss, collaborate, and further refine the proposal.
  7. Based on discussions in the previous meeting, additional details are added to the proposal, alongside Terms & Conditions, transforming the proposal into a legal contract.
  8. We begin working together to achieve your commercial goals and international ambitions.

Frequently Asked Questions

1. What is the average length of an Innovation Sourcing project?

Between 12 to 24 months, based on an annual recurring contract.

2. What sector do you focus on?
Healthcare, greentech, mobility, edtech, fintech, and e-commerce.

3. What regions do you focus on?
We focus on the municipalities of Shanghai and Beijing as well as the provinces of Zhejiang, Jiangsu, and Guangdong.

4. After the project is completed, can you work in a reduced capacity to continue to help us grow?
Yes, we typically reduce our fees by approximately 75% after the project is over to enable you to continue to access the Serica Launchpad and our team’s expertise. In some rare cases, we can even join your board of directors or advisory board to provide corporate governance and strategic oversight.

5. Are expenses covered?
No, any expenses (such as travel and accommodation) will be borne by you. Our contracts typically state that all expenses must be pre-approved and itemized receipts must be provided before any reimbursements of expenses can be made.

6. Are there any third-party fees we will incur?
Maybe, it depends on the project scope. Common third-party fees include software, legal, and administrative fees that you will incur. Where such third-party fees occur, Serica will endeavor through its network of strategic partners, to keep these costs to a minimum.

7. What are your billing cycles?

Our project fees and retainers are billed quarterly, with the first payment due within ten (10) business days of the contract being entered into. Any commission is due within ten (10) business days of the commercial contract being entered into.

8. What currencies do you accept?
USD, GBP, EUR, and RMB.

9. What jurisdictions apply to Serica contracts?
Our default jurisdiction is Singapore due to its advanced legal system and efficient (and cost-effective) dispute resolution. We can also accept other well-regarded Common Law jurisdictions such as England and the United States as alternative jurisdictions.

10. Why do you exclusively use digital contracts, proposals, and invoices?

The ability to receive, sign, and pay electronically provides both of us with enhanced security and greater convenience. Learn more.

11. How do you track and report project progress?
We provide you with direct access to our communication hub (Microsoft Teams) and project management software (Monday.com) that enables you to track and review our progress in real-time.

12. What else do you need from us?
Serica takes a highly collaborative approach to every project we undertake. Throughout the project, we expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.

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